Around 3.5 million taxpayers were affected by an ERTE or received the Minimum Vital Income (MVI) last year. This will affect their income tax return, since many of them will have to file it, although this does not mean that they will have to pay. 

The current regulations indicate that the taxpayer who has two or more payers must file the income tax return if his income exceeds 14,000 euros, and that of the second payer exceeds 1,500 euros. If this is the case, the tax return must be filed, since the SEPE is considered as a second payer, i.e., the benefit received is not tax exempt. 

In the case of having received from the SEPE payments which are not applicable or higher, it will depend on whether the SEPE has initiated the refund proceedings of such excess at the time when the taxpayer files the tax return or not. 

According to the Tax Agency, those taxpayers who have not filed a tax return in 2020 -which corresponds to the fiscal year 2019- will receive by mail detailed information on the procedure and, in addition, personalized assistance will be reinforced for these cases. 

Minimum Vital Income MVI 

The Tax Agency has pointed out that the Minimum Vital Income (IMV) is a tax-exempt income, and that most taxpayers will not have to include it in their return but will have to file it regardless of the income received. 

“Even in those cases in which the minimum vital income is exempt in its entirety and the recipient has not obtained any other income, he/she will have to file the IRPF 2020 return. In this case, the boxes on your return will appear with zero amount,” the Treasury notes on its website. 

And the self-employed? 

The cessation of activities due to the pandemic particularly affected the self-employed this last year. Many have stopped their economic activities without receiving income and are still obliged to file the 2020 income tax return. 

In the case of the self-employed, there are no exemptions when it comes to filing the tax return. That is to say, there is no limit on the income from work below which it is not necessary to file the personal income tax return; contrary to what happens with workers on the payroll. Self-employed workers must justify to the Tax Agency what they have earned during the year, regardless of the amount. 

All extraordinary aid for termination of activity -whether state, local or regional- is taxed as income from work, except for the first 2,000 euros, and those aids explicitly established as exempt from payment. 

In addition, there are new reductions in the tax regime for modules, so that tax is paid for the days in which it was possible to carry out the activity, and it was not affected by the state of alarm or other administrative measures of restriction. 

If you have any doubts about how to file your income tax return, schedule an appointment with us, at Duguech&Dip we are here to help you. 

This information does not constitute under any circumstances legal advice, serving only for informational purposes. In case you need professional services in Global Immigration and Mobility, please contact us.

* It should be taken into account that the regulations of any of the countries analyzed, as well as the established procedures, may change at any time and without prior notice.

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